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Comment by basisword | Hacker News Reader

Can anybody explain how this makes sense for Square? Square + Tidal seems like a bizarre combination with neither benefiting in any significant way from being owned by the same company.

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>Can anybody explain how this makes sense for Square?

I think the next frontier in fintech is getting in every payment rail imaginable. The music part isn't relevant, it's the payment of artists that Square is most likely interested in. Square wants to process your deposit right into your CashApp bank account and pay for your records with the CashApp card.

Jack and Jay-Z are pals. Jack is just another milquetoast SV CEO, but loves to surround himself with actual celebrities. This appears to be all but a sycophantic move to maintain his friend circle. It makes zero business sense.

Chances are it’s something we cannot see. Technology, people, an existing deal or relationship with someone Square wants to be close to.

In some places, you need to pay rights to play music in your store. As Square has a great number of business customers, it might be an easy upsell. Like get paid and provide a great ambiance?

Could also be a play to help reframe how people think of Square and be able to expand in other categories SMBs might need.

That's a great point I hadn't thought of. For example, small coffee shops play music on Spotify. IANAL, but I assume that's technically illegal, though no one will sue a tiny coffee shop over that. But once you start expanding to multiple shops, you may want to get more "legitimate". You already have Square, so now you can just add the Tidal service to your bill

The cost is less Tidal and more the Ascap and BMI licensing. It looks like there are companies who will bundle the cost of licensing into your monthly fee, though.

>In some places,

Some? Can you please tell me about where you legally/legitimately can perform recorded music in a public place for public consumption without "permission"?

I can't speak to the legality, but i've seen countless places (retail shops, restuarants, etc) where they were playing radio over the speakers. Also, i've seen playing over spotify.

As have I, and every one of those are breaking ASCAP/BMI licensing. A lot of stores subscribe to "in-store" networks, and that subscription covers these licensing fees. Using someone's iDevice with their Spotify/whatever app even if it is paid for is NOT a license for public performances. You (royal you) can disagree with it, but it is what it is. If it is usually the smaller places that feel the proper licensing is too expensive, but will be floored when they get popped.

Pure speculation, but I think there might be a play for Square to get into the concert merchandise business. The merch booth at shows always has vinyl and CDs for sale. Most people no longer have the latter and vinyl is a much smaller market compared to streaming.

I think a merchandise vendor who could provide exclusive releases to attendees in addition to handling payment processing might be very attractive to artists.

And Jay-Z happens to be the founder of RocNation, a quietly successful artist/athlete management concern.

A lot of dots can connect here.

Dorsey giving money to friends.

Why does a search engine have a music company? Why does a premium hardware company and OS company have a music company? Why does a retail store have a music company?

It's conglomeracy and the theory of the firm. Mergers are efficient.

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